Developer details pricing goals for new housing in west Steamboat Springs
May 27, 2017
Housing developer Brynn Grey would like the prices for the new units it wants to build in west Steamboat Springs to be comparable to the price tags on the homes, duplexes and townhomes the company has developed in the Lincoln Park at Wellington Neighborhood in Breckenridge.
There, townhomes are currently selling for about $272,900, and duplexes are selling from $315,900 to $350,900.
Deed-restricted single family homes are selling for $413,900 to $429,000, and single-family market rate homes are selling from $529,900 to $849,900.
But these price points come with a big caveat, the developers recently wrote in a letter to the Steamboat Springs City Council.
They said there are "significant headwinds" at the former Steamboat 700 site, including higher land costs and city tap fees and infrastructure costs, that did not exist at the development in Breckenridge.
And, they estimate that vertical construction costs in Routt County exceed the costs they faced in Summit County.
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"As we get closer to annexation and construction, we will be better able to pinpoint the costs," Brynn Grey CEO David O'Neil and business partner Melissa Sherburne wrote in a letter to the city.
The developers also said they are giving the city "unprecedented" transparency by sharing pro formas for the proposed development with the city's finance director and offering to share it with the council behind closed doors.
Overall, they said, about a third, or 145, of the units at the entire development in west Steamboat would come with deed restrictions prohibiting short-term rentals and requiring that the owner work at least 30 hours per week in Routt County and live in the house.
"It's clear from what they've proposed they're intending to meet demand for locals housing we've identified," Yampa Valley Housing Authority Executive Director Jason Peasley said. "We would obviously love for it to be higher (than 33 percent of the development), but all of the costs that go into the project create an economic scenario that are at odds with that.
"We want these price points in the $200,000, $300,000 and $400,000 range," Peasley added. "But the costs of offsetting their impact and water-firming fees and all of these various costs that have been a part of the city, those are now competing with the price points we're trying to get at."
The affordability and pricing of the new homes will be discussed Tuesday at a City Council work session.
The item is the first topic of the council's meeting, which starts at 5 p.m.